Suppose that business travellers and vacationers have the following demand for airline tickets from Dhaka to Chittagong: Suppose that business travellers and vacationers have the following demand forairline tickets from Dhaka to Chittagong:Quantity demanded(business travellers)Price (in taka)Quantity demanded(vacationers)10001502100200200080025019006003001800400As the price of tickets rises from Tk250 to Tk300, what is the price elasticity ofdemand for (i) business travellers and (ii) vacationers? (Use the midpoint method inyour calculations.) b. Why might vacationers have a different elasticity from businesstravellers?

The elasticity of demand shows the responsiveness of quantity demanded due to change in price of the…

Suppose that business travellers and vacationers have the following demand for airline tickets from Dhaka to Chittagong: Quantity demanded (business travellers) Quantity demanded (vacationers) 1000 Price (in taka) 150 2100 800 600 200 2000 250 1900 300 1800 400 As the price of tickets rises from Tk250 to Tk300, what is the price elasticity of demand for (i) business travellers and (ii) vacationers? (Use the midpoint method in your calculations.) b. Why might vacationers have a different elasticity from business travellers?

Suppose that business travellers and vacationers have the following demand for airline tickets from Dhaka to Chittagong: Quantity demanded (business travellers) Quantity demanded (vacationers) 1000 Price (in taka) 150 2100 800 600 200 2000 250 1900 300 1800 400 As the price of tickets rises from Tk250 to Tk300, what is the price elasticity of demand for (i) business travellers and (ii) vacationers? (Use the midpoint method in your calculations.) b. Why might vacationers have a different elasticity from business travellers?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 11E: The price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for...

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